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HomeServe profit rises as North America growth offsets weak UK
HomeServe's annual profit rose 25% as strong growth at its North America division more than made up for falling profit at the UK arm of the emergency home repairs group.
Pre-tax profit for the year to 31 March rose to £123.3m from £98.3m as revenue increased 15% to £899.7m. Operating profit rose 29% to £135m.
In North America, where HomeServe is expanding through acquisitions, operating profit surged to £40.5m from £14.7m as the company added its own customers, integrated the purchase of Utility Service Partners and bought the policy book of Dominion Products and Services. Profit also rose in France and Spain.
In the UK, which is HomeServe's biggest market, operating profit fell to £59.3m from £62m. HomeServe said the drop in UK profit was caused by the £2.5m cost of cutting jobs to simplify the business and make it more efficient.
The company said Martin Bennett, chief executive of HomeServe UK, would step down from the board at the company's annual meeting in July and leave the company later in 2018.
Richard Harpin, the company's founder and chief executive, said: "This has been another great year for HomeServe, with record profit growth and another step change in our growth in North America.
"HomeServe has good prospects for growth in the full-year 2019 with attractive strategic opportunities in all its geographies. In particular, continued strong organic growth is expected in North America, with acquisitions providing opportunities to further accelerate business development across the group."
The annual dividend rose 25% to 19.1p a share.